An independent report conducted by Games Investor Consulting Limited has revealed that the UK’s gaming industry is currently under extreme pressure. Presenting the report next week to the UK’s Department of Culture, Media and Sport, it is likely that gaming leaders will ask the government for a cultural tax break.
Currently ranked third in the world, behind that of America and Japan, the UK gaming industry turned over £4.03bn in 2008 whilst contributing to £2bn in global gaming sales. However, this has come under serious threat with other countries gaining tax breaks which allow them to poach British talent. An unnamed source said “Our best technical guy was offered 2.5 times his UK salary, 100% subsidised relocation costs and a comprehensive support programme… to move to Canada… We simply cannot compete with that.”
To attempt to prevent this, insiders are asking for tax breaks similar to those that the film industry already enjoys. Eidos president Ian Livingstone said “Over the years, the government has failed to support the games industry regarding the problems caused by rising costs and inadequate graduate skills… (it) has failed to introduce a production tax credit scheme to enable the UK to compete globally on an even playing field whereas many foreign governments have invested heavily in their own games industries. The government is ready to help traditional industries that are hurt by the recession. But for our long term interests it should invest in a digital future rather than prop up a failing past.”
With no aid, the industry predict that the UK’s gaming sector will fall to fifth in 2009, with further falls in 2010.
